Brazil proposes protectionist measures

27th March, 2012 by Patrick Schmitt

Brazil is considering raising the tariff on wine imports to protect its domestic wine industry.

Proposals were announced in mid-March to hinder the expansion of imported wine into the fast-growing economy using measures such as increasing tariffs from 27% to 55% and introducing country by county quotas.

Other measures suggested included imposing a minimum price, and making Portuguese front labels compulsory as well as banning terms such as organic and biodynamic.

Writing to the drinks business, Paul Medder, who is based in Rio de Janeiro and works for Wine Intelligence, warned of these efforts to “safeguard” national wine production as part of a consultation by the Brazilian Ministry for Development Industry and Trade (MDIC), opened on 15 March.

He explained that a circular had been issued claiming that that imported wines “are causing serious damage to the national wine industry” based on analyses of sales and production data covering the period January 2006 to December 2010.

This missive, he says, is the result of lobbying by the Brazilian Wine Institute (IBRAVIN), the Brazilian Union of Vitiviniculturists (Uvibra), the Federation of Wine Cooperatives (Fecovinho) and the Wine Industry Syndicate of Rio Grande do Sul (Sindivinho) on behalf of large Brazilian producers and cooperatives such as Miolo, Salton, Aurora, Aliança, Don Giovanni, Garibaldi, Casa Valduga and Dal Pizzol.

Medder writes, “Predictably, the announcement of the consultation has had a strong response among Brazil’s community of importers, retailers and oenophiles.”

He cites Ciro de Campos Lilla, president of leading importers Mistral and Vinci, who claims that the adoption of such measures “would return Brazil to a market seen 20 years ago with fewer options for consumers… We will lose all of the effort, work and improvement obtained in the interim”.

Medder also records that some have called for a boycott of wines produced by those responsible for the circular.

For example, Roberta Sudbrack, one of Brazil’s most renowned chefs, Medder claimed has taken Casa Valduga and Dal Pizzol off the wine list at her eponymously-named restaurant in Rio de Janeiro in support of the protests.

Medder notes, “For the future development of the Brazilian wine market, one can only hope that sufficient pressure is applied on the government, both from within Brazil and from concerned producers and wine lovers abroad, to head off such short-sighted protectionist measures.”

Interested parties have until mid-April to present alternative arguments (in Portuguese) to the MDIC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

ViVAS Wine - Category Development Manager

ViVAS
Harlow and Stowmarket or Salisbury, UK

Fine Wine Logistics Coordinator

IG Wines
London, GB

Brand Ambassador East Coast USA - Ableforth’s

Maverick Drinks
New York - field-based, USA

Brand Ambassador West Coast USA - Ableforth’s

Maverick Drinks
San Francisco / Los Angeles - field-based, USA

Global Travel Retail Manager

Maverick Drinks
London, UK

Portfolio Ambassador - Europe

Maverick Drinks
North West Europe - field-based, UK

Senior Partner Manager - Grocery

Maverick Drinks
London/Field Based, UK

Sales Executive

Woolf Sung Ltd
London

Trade Marketing Manager - Maverick Drinks

Maverick Drinks
London / Kent

Business Development Executive Central London

William Grant & Sons UK
London

The City Wine Show

London,United Kingdom
22nd Sep 2017

Almaviva 2015 Vintage and Vertical Tasting

London,United Kingdom
28th Sep 2017

TFWA World Exhibition & Conference

Cannes,France
1st Oct 2017
Click to view more

Global Chardonnay Masters 2017

Deadline : 29th September 2017

The Global Riesling Masters 2017

Deadline : 29th September 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more